The mortgage providing division of Lloyds TSB has very recently launched an AIRMILES mortgage. In the second stage of its partnership with AIRMILES, Lloyds TSB says the new mortgage service will allow customers to earn 6000 airmiles upfront, and an additional 50 airmiles with each monthly repayment

“This new deal combines some of our most competitive rates, with a genuinely useful reward package,” said  Alison Burns, director of network mortgage sales at Lloyds TSB. “We all enjoy the idea of getting something for free and in a time when mortgage payments are a top priority, this offer enables customers to earn rewards on their essential spending.”

The lump sum of 6000 airmiles will be granted to Customers who opt for the new AIRMILES product on completion of their mortgage, and the additional 50 airmiles will be provided to them each month for the life of the fixed rate.

Made available as of  Wednesday 7th May 2008, AIRMILES mortgage will be offered on a range of three year fixed rate products, with rates starting from 5.89%, Lloyds TSB said in their recent statement on the new service.

The statement further indicated that customers can earn up to 7800 airmiles over the three year fixed period, and that the points collected may be used against a vast array of rewards.

Some of the rewards packages include a return flight to any zone four destination, including Barbados, Hong Kong or Delhi (6000 airmiles), five return flights to Barcelona, Rome or Prague (1500 airmiles per return flight), 19 haircuts at a top salon (400 airmiles per haircut), six trips to the theatre, with dinner for two people (1250 airmiles per trip), or 10 cases of deluxe wines ( 750 airmiles per case).

“The AIRMILES partnership has proved extremely popular with credit card customers and we hope to replicate this success with the introduction of a reward mortgage,” added Alison Burns. “This is a brand new concept for the mortgage market and part of our ongoing commitment to provide customers with innovative products.”

In addition to the above-mentioned reward options, Lloyds TSB has stated that a family of four could choose to enjoy a day out at Newmarket races, a tour of the Manchester United stadium, a dolphin watching session, a day at Legoland, “and there would still be enough left for Mum and Dad to enjoy return flights to Paris,” the company statement highlights.

Those who decide to go with the AIRMILES mortgage are also able to acquire a 100 airmiles bonus if they choose to take out Lloyds TSB combined contents and buildings insurance in conjunction with their mortgage, the company statement adds.